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VAT

 
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loveka



Joined: 19 Aug 2016
Posts: 54

PostPosted: Sun Jul 30, 2017 1:16 pm    Post subject: VAT Reply with quote

We are now just getting stuff together to send to an accountant. We didn't earn anything in this tax year, but all our expenses were incurred.

I am self employed, and I am looking to the future and wondering what happens if you end up VAT registered? It would be fine for my business. But for the holiday let the agency sets the prices so I'm a bit confused how we would charge VAT?

Thanks!
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newtimber



Joined: 24 Nov 2012
Posts: 1513
Location: Brighton

PostPosted: Sun Jul 30, 2017 2:37 pm    Post subject: Reply with quote

You probably don't want to be into holiday lets if you are VAT registered. You are competing on price with everyone who is not VAT registered. It would be best to do your self-employed work as a company and not be VAT registered yourself.

How the VAT works is simple. The agent will let you know what rent they charged the guest and the fees they charged you. (They won't mention any booking fees paid directly by the guest to the agent). From the gross rent, you calculate the VAT you charged them (⅙ of the gross rent) and you pay this to HMRC less the VAT the agent charged on their fees to you.
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